Smith & Wesson Brands(SWBI) - 2025 Q3 - Quarterly Results

Financial Performance - Q3 net sales were $115.9 million, a decrease of$21.6 million, or 15.7%, compared to the same quarter last year[6] - Q3 gross margin was 24.1%, down from 28.7% in the comparable quarter last year[6] - Q3 GAAP net income was $1.7 million, or$0.04 per diluted share, compared to $7.9 million, or$0.17 per diluted share, for the same quarter last year[6] - For the nine months ended January 31, 2025, net income decreased to $3,690,000 from$13,499,000 in the same period of 2024, representing a decline of approximately 72.6%[16] - GAAP net sales for the three months ended January 31, 2025, were $115,885,000, down from$137,484,000 in the same period of 2024, a decrease of about 15.6%[17] - Non-GAAP net income for the nine months ended January 31, 2025, was $4,538,000, compared to$21,309,000 for the same period in 2024, reflecting a decline of approximately 78.7%[17] Revenue Expectations - The company expects full year revenue to be 5-10% lower than in fiscal 2024[4] Product Performance - New products introduced within the past year accounted for over 41% of sales in the quarter[4] Cash Flow and Liquidity - Cash and cash equivalents decreased to $26.7 million from$60.8 million as of April 30, 2024[12] - The company reported a net cash used in operating activities of $48,051,000 for the nine months ended January 31, 2025, compared to cash provided of$63,003,000 in the same period of 2024[20] - Free cash flow for the nine months ended January 31, 2025, was negative $62,365,000, compared to negative$22,185,000 for the same period in 2024[20] - Cash and cash equivalents at the end of the period were $26,704,000, down from$47,367,000 at the end of the same period in 2024, a decrease of approximately 43.7%[16] Expenses and Liabilities - Non-GAAP adjusted EBITDAS was $13.3 million, or 11.5$21.4 million, or 15.6% of net sales, for the same quarter last year[6] - Non-GAAP Adjusted EBITDAS for the nine months ended January 31, 2025, was $41,664,000, compared to$58,327,000 for the same period in 2024, a decrease of approximately 28.6%[19] - The company incurred stock-based compensation expense of $5,724,000 for the nine months ended January 31, 2025, compared to$4,264,000 in the same period of 2024, an increase of about 34.2%[16] - The company reported interest expense of $5,881,000 for the nine months ended January 31, 2025, compared to$3,404,000 for the same period in 2024, an increase of about 72.9%[19] Balance Sheet - The company maintains a strong balance sheet with total assets of $578.9 million as of January 31, 2025[12] - Total current liabilities decreased to$63.98 million from $96.7 million as of April 30, 2024[12] Dividends - The board of directors authorized a quarterly dividend of$0.13 per share, payable on April 3, 2025[4]